IFSCA Draft Pension Fund Regulations 2026 for IFSC Retirement Framework

  • Blog|News|FEMA & Banking|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 16 February, 2026

Latest from Taxmann

IFSCA Pension Fund Regulations 2026

Press Release; Dated: 12.02.2026

The International Financial Services Centres Authority (IFSCA) has approved the draft IFSCA (Pension Fund) Regulations, 2026, proposing a comprehensive regulatory framework for long-term retirement savings and pension solutions within the IFSC ecosystem.

The draft framework aims to position IFSC as a competitive global hub for retirement and long-term savings products.

1. Introduction of Voluntary Pension Schemes

The proposed regulations enable:

  • Voluntary pension schemes for individuals
  • Eligibility for subscribers aged 18 years or above

The framework is designed to provide flexible, globally aligned retirement savings options for both domestic and international participants.

2. Flexible Investment and Lifecycle-Based Allocation

Subscribers will be allowed to:

  • Choose their asset allocation based on risk appetite and financial goals
  • Opt for lifecycle-based investment options where asset allocation:
    1. Adjusts automatically with age
    2. Gradually shifts toward lower-risk assets over time

This flexibility supports personalised retirement planning.

3. Dedicated Healthcare Benefit Option

A key innovation in the draft regulations is the introduction of a Healthcare Benefit Option.

3.1 Contribution Allocation

  • Subscribers may allocate up to 10% of their contributions
  • Into a separate healthcare sub-account

3.2 Key Features

  • Investment in low-risk and highly liquid instruments
  • Access to funds for:
    1. Medical emergencies
    2. Planned healthcare expenses

  • At retirement, option to:

    1. Use the balance for health insurance purchase, or
    2. Roll over the balance into the main pension corpus

This feature integrates retirement and healthcare planning within a single framework.

4. Investment Framework for Pension Funds

Pension Fund Managers (PFMs) will be permitted to invest across diversified asset classes, including:

  • Equities (domestic and foreign)
  • Fixed income instruments
  • Alternative assets
  • Other permissible investment instruments

These investments will be subject to:

  • Defined exposure limits
  • Concentration norms
  • Prudential risk management safeguards

5. Regulatory Objective

The proposed pension regulations aim to:

  • Promote long-term retirement savings in IFSC
  • Provide globally competitive pension products
  • Encourage financial planning and healthcare preparedness
  • Strengthen IFSC’s position as an international financial hub
  • Ensure robust risk management and investor protection

6. Key Takeaway

The draft IFSCA (Pension Fund) Regulations, 2026 introduce a comprehensive and flexible retirement savings framework in IFSC, featuring voluntary participation, diversified investment options, lifecycle allocation, and an innovative healthcare benefit component to support holistic long-term financial security.

Click Here To Read The Full Press Release

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied